![\"wing](\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/15\/2023\/02\/21184601\/pexels-matt-hardy-1928067-225x300.jpg\")
Figure 1. Boeing's main competitor is Airbus.[\/caption]\r\n\r\n Figure 1. Boeing's main competitor is Airbus.[\/caption]\r\n\r\nBoeing an American company that is a top U.S. exporter of aerospace technology, employing over 140,000 people in the U.S. and all over the world. In 2018, one of Boeing's 737 MAX airplanes crashed in Indonesia. Just five months later, another crashed in Ethiopia. A total of 346 people died.<\/p>\r\n
In the aftermath of the crashes, Boeing halted production of the 737 MAX temporarily and regulators grounded the 737 MAX from flying for a total of 20 months. This meant that airlines were losing profits because their planes sat on the ground, unable to carry passengers. Investigations revealed that Boeing's decisions, made to speed up its ability to bring an updated product to market to compete with rival Airbus, ultimately caused these crashes and were preventable.<\/p>\r\n
In the spring of 2011, Boeing learned that American Airlines, which had exclusively flown Boeing planes for over 10 years, was about to place an order with Airbus. Rather than lose the business, Boeing discarded their original strategy to design a new plane, which would take a decade, and instead promised that it would update the already existing 737 on an accelerated schedule.<\/p>\r\n
One of the features of the updated 737 MAX was the Maneuvering Characteristics Augmentation System (MCAS), which was supposed to make the aircraft more resistant to stalling. However, Boeing decided not to tell pilots about the addition of MCAS or how it works. This decision was made so that an airline that bought the 737 MAX could avoid time consuming and expensive simulator training for its pilots. Instead, training could be done on a laptop or tablet. Any mention of MCAS was also removed from flight manuals.<\/p>\r\n
Boeing also convinced regulators that its redesign was safe. Boeing took these actions despite knowing as early as 2012 that a test pilot had trouble responding to MCAS and had that taken place on a real flight, the plane would have crashed. Other information was revealed that Boeing officials inappropriately coached test pilots to achieve desired outcomes. As this information came to light, then-CEO Dennis Muilenburg was forced to resign along with other executives.<\/p>\r\n
Boeing eventually entered into a settlement with the U.S. Department of Justice in 2021 to resolve a charge that the company defrauded regulators with faulty safety information. Boeing agreed to pay a $244 million fine, set up a $500 million fund for the families of the crash victims, and $1.77 billion to airlines who had to ground the 737 MAX planes in their fleets for 20 months.\u00a0The Federal Aviation Administration also required Boeing to install and implement additional safety measures in its retested 737 MAX planes. Regulators around the world also implemented requirements that pilots would need to complete special training.<\/p>\r\n
If you go to Boeing's website, among the values listed are engineering excellence, which involves building products with \"safety, quality, and integrity.\" Does Boeing need to sacrifice those values to remain competitive?<\/p>","rendered":"
Boeing an American company that is a top U.S. exporter of aerospace technology, employing over 140,000 people in the U.S. and all over the world. In 2018, one of Boeing’s 737 MAX airplanes crashed in Indonesia. Just five months later, another crashed in Ethiopia. A total of 346 people died.<\/p>\n
In the aftermath of the crashes, Boeing halted production of the 737 MAX temporarily and regulators grounded the 737 MAX from flying for a total of 20 months. This meant that airlines were losing profits because their planes sat on the ground, unable to carry passengers. Investigations revealed that Boeing’s decisions, made to speed up its ability to bring an updated product to market to compete with rival Airbus, ultimately caused these crashes and were preventable.<\/p>\n
In the spring of 2011, Boeing learned that American Airlines, which had exclusively flown Boeing planes for over 10 years, was about to place an order with Airbus. Rather than lose the business, Boeing discarded their original strategy to design a new plane, which would take a decade, and instead promised that it would update the already existing 737 on an accelerated schedule.<\/p>\n
One of the features of the updated 737 MAX was the Maneuvering Characteristics Augmentation System (MCAS), which was supposed to make the aircraft more resistant to stalling. However, Boeing decided not to tell pilots about the addition of MCAS or how it works. This decision was made so that an airline that bought the 737 MAX could avoid time consuming and expensive simulator training for its pilots. Instead, training could be done on a laptop or tablet. Any mention of MCAS was also removed from flight manuals.<\/p>\n
Boeing also convinced regulators that its redesign was safe. Boeing took these actions despite knowing as early as 2012 that a test pilot had trouble responding to MCAS and had that taken place on a real flight, the plane would have crashed. Other information was revealed that Boeing officials inappropriately coached test pilots to achieve desired outcomes. As this information came to light, then-CEO Dennis Muilenburg was forced to resign along with other executives.<\/p>\n
Boeing eventually entered into a settlement with the U.S. Department of Justice in 2021 to resolve a charge that the company defrauded regulators with faulty safety information. Boeing agreed to pay a $244 million fine, set up a $500 million fund for the families of the crash victims, and $1.77 billion to airlines who had to ground the 737 MAX planes in their fleets for 20 months.\u00a0The Federal Aviation Administration also required Boeing to install and implement additional safety measures in its retested 737 MAX planes. Regulators around the world also implemented requirements that pilots would need to complete special training.<\/p>\n
If you go to Boeing’s website, among the values listed are engineering excellence, which involves building products with “safety, quality, and integrity.” Does Boeing need to sacrifice those values to remain competitive?<\/p>\n